Download Market Strategy Development

Market Strategy Development Series
Building Block 3
Strategic Marketing Approach
Planning Document
Company: <Enter your company name here>
Last updated: <Enter the last update date here>
Table of Contents
1. Competition .................................................................................................................................... 3
a.
Describe your main sources of competition ................................................... 3
b.
Differentiate yourself ....................................................................................................... 3
c.
Plot your value curve ....................................................................................................... 4
d.
The ERRC framework ....................................................................................................... 5
2. Partnerships .................................................................................................................................... 6
a.
Determine your partnering approach .................................................................. 6
b.
Choose your partners and allies.............................................................................. 7
3. Distribution ...................................................................................................................................... 8
4. Pricing ................................................................................................................................................. 9
a.
Value and price .................................................................................................................... 9
b.
External factors .................................................................................................................... 9
c.
Determining a pricing model .................................................................................. 10
5. Positioning .................................................................................................................................... 10
6. Design Your Business Model ........................................................................................... 11
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1. Competition
a. Describe your main sources of competition
<In the table below, list your main competitors, indicate if they represent reference
or economic competition, and note their strengths and weaknesses>
Competitor
Type of competition
Strengths and weaknesses
b. Differentiate yourself
<List the differences between you and your competitors that generate value for your
target customer, and identify any opportunities to offer value that the competition
may have overlooked>
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c. Plot your value curve
<Using the factors identified in steps a and b, use the strategy canvas below to plot
the value curve of your offering alongside those of your main competitors. Note, you
will have to print this page to complete this exercise>
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d. The ERRC framework
<Consider your competitive factors, and complete the ERRC framework below. Refer
to the corresponding section of the workbook for guidance>
Eliminate

Reduce

Raise

Create

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<Based on any changes from the ERRC exercise, plot the new value curve of your
offering in the strategy canvas template below. Again, you will have to print this
page in order to complete this exercise>
2. Partnerships
a. Determine your partnering approach
<With the rest of your leadership team, brainstorm ideas about possible partners.
Consider the relevant objectives as your whole product strategy moves through the
early stages in the technology adoption lifecycle (TALC). Document your list below>
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b. Choose your partners and allies
<Refer to your list of possible partners, and make a short list of those specific
candidates you’ll need now and those you’ll need later as you move through the
TALC. Document this in the table below. Identify your expectations for each
partnership, and the time frame needed for implementation>
Partner
When required
(Early Market,
or Chasm)
Expectations
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Building Block 3: Strategic Marketing Approach Planning Document
Implementation
time frame
7
3. Distribution
<Complete the table below for each distribution option under review>
Issues to consider
Your ideal fit
Market size and variation in customer profiles
Will you require large logistical
capabilities to reach your market?
Will you need more than one distributor
to reach all your target customers?
Cost of the distribution channel
What are the cost elements of the
channel: fixed vs. variable, cost per sale,
absolute value?
What is the profitability of the distribution
channel?
Type of product
Is your product standardized to such a
degree that you don’t need a distributor
with customization capability?
Or, do you have a non-standardized
product that requires the capability to
customize at an individual customer
level?
Degree of risk and control
Is access to customer feedback important
to you and does the distributor offer
access to customer feedback?
Is there a risk that you will be training a
future competitor?
Flexibility
Will the amount of time to train the
channel correspond with the time of the
contract?
Does the contract offer require flexibility
in terms of non-exclusivity, breaking of
the contract, etc.?
<Reflecting on the factors in the above table, answer the following two questions>
1. What is your ideal distribution channel?
2. Is this channel available?
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4. Pricing
a. Value and price
<Consider the following questions, and write your responses below>
1. How critical to your customer’s operation is your product, and what
alternatives does your customer have? Does your product impact core
processes or is it on the margins of the customer’s operation?
2. How does your product generate value for your customers? Does it increase
sales or customer retention? Does it reduce cost?
3. How can you measure this value? Which of your customer’s performance
metrics are affected by your product? Does this value apply to all potential
customers?
4. Is this value generated on a one-time or continuous basis? Does ongoing
value generation depend on regular service or maintenance from you?
b. External factors
<Consider the following questions, and write your responses below>
1. Customer constraints: How does your customer make money, and what
does their cost structure look like? How does your product fit with your
customer’s income and cost structure?
2. Competition: How do your competitors charge for their products? Is there an
industry-standard pricing model that you will be expected to adhere to?
3. Partners and allies: How do your value chain partners make money? How
does your product fit with your partners’ business model? Can they make
money in the same way with your product as with other products?
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c. Determining a pricing model
<Use the results of steps a and b to construct a pricing model that matches your
business objectives, the market in which you operate, and the value you offer your
clients. Write your model below>
Refine your general model by considering these key points:
1. Are you pricing a one-off transaction or an ongoing relationship?
2. What is included in the initial sale, and what are extras?
5. Positioning
<To develop your positioning statement, apply the framework recommended by
Geoffrey Moore, and complete the sentences below>

For… (your target customer or market)

Who… (the compelling reason to buy)

Our product is a… (your placement within a new or existing category)

That provides… (the key benefit that directly addresses your customer’s
compelling reason to buy)

Unlike… (the primary alternatives or competitors)

We have assembled… (key difference or point of differentiation in relation to
your specific target customer)
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6. Design Your Business Model
<Use the table below to lay out your business model. Refer to the questions in
section 6 of the workbook for guidance>
Business Model Description
Offering

Infrastructure

Customer

Finances

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